Can I retire at age 40 with 875,000?

Use the below retirement simulation to view the chances of a successful retirement.
Confused? Try the simple retirement calculator

About Your Retirement ?

Current Age
Retirement Age
Current Savings $
Annual Deposits $
Annual Withdrawals $
Stock market crash:

Portfolio ?

% in Stocks:
% in Bonds:
% in Cash:
Modify Stock Returns:
0%
Modify Bond Returns:
0%
Modify Cash Returns:
0%
Modify Inflation:
0%
How much money do I need to retire?

This retirement calculator runs simulations based on past data from the S&P 500, 10 Year Treasury Bond, 3 month T-Bill, and US inflation. For each year of each simulation, a random return and inflation amount is chosen.

How to use: Enter your current age and the age when you retire. Then enter your current savings, the amount that you can save annually before you retire, and the amount that you plan to withdraw after retirement. Your annual deposits and withdrawals take inflation into account. For example, if you need $50,000 to live on in retirement using today's dollars, we will automatically take into account the cost of living for your retirement years. The same is true for your annual deposits. Next, decide if you'd like to simulate a stock market crash.

In the portfolio section, choose the makeup of your portfolio with stocks, bonds, and cash. Cash assumes that your money is stored in a savings account. You can then alter the future returns and inflation. For example, if the market has historically returned about 10%, but you think the future will be worse, modify the stock returns by -3%, and the future returns will average out to 7%. Investment fees can also lower stock market returns. Many index funds and ETFs offer extremely low fees and expenses.

Many people receive income in retirement, such as social security, pension plans, part time jobs, annuities, and other benefits. This would allow you to take out smaller distributions every year. Please note that taxes must also be considered, but are not used in this simulation. A 401k, Roth IRA, and Traditional IRA are taxed differently than a standard investment account, as are dividends.

Note: This assumes that the future is at least somewhat like the past. In reality, anything could happen. The Soviet Union collapsed, Japan's Nikkei Index is still well below its 1989 peak. Numerous other markets have changed drastically and never recovered. However, this online tool is helpful in retirement planning and estimating how much you might need for retirement, especially those hoping to retire early. We recommend receiving advice from a financial planner.

Want to retire with $875,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%15.1%
1 years$72,257$71,613$70,985$70,372$69,774$68,309
2 years$35,771$35,104$34,459$33,833$33,226$31,757
3 years$23,610$22,941$22,297$21,677$21,080$19,653
4 years$17,531$16,864$16,227$15,617$15,034$13,660
5 years$13,885$13,222$12,593$11,995$11,429$10,111
6 years$11,455$10,797$10,177$9,593$9,043$7,784
7 years$9,719$9,067$8,457$7,887$7,355$6,153
8 years$8,419$7,772$7,172$6,616$6,101$4,958
9 years$7,407$6,767$6,177$5,635$5,138$4,052
10 years$6,599$5,965$5,385$4,858$4,378$3,348
11 years$5,938$5,310$4,741$4,228$3,765$2,790
12 years$5,387$4,766$4,208$3,708$3,263$2,341
13 years$4,922$4,307$3,759$3,274$2,845$1,975
14 years$4,523$3,915$3,378$2,906$2,494$1,674
15 years$4,178$3,576$3,050$2,592$2,196$1,424
16 years$3,877$3,281$2,765$2,321$1,941$1,215
17 years$3,611$3,022$2,516$2,085$1,721$1,040
18 years$3,375$2,792$2,297$1,879$1,530$891
19 years$3,164$2,588$2,103$1,698$1,364$766
20 years$2,974$2,405$1,930$1,538$1,218$659
21 years$2,802$2,240$1,775$1,396$1,090$568
22 years$2,647$2,091$1,636$1,269$977$490
23 years$2,505$1,956$1,510$1,156$877$423
24 years$2,375$1,832$1,397$1,054$788$365
25 years$2,256$1,720$1,294$963$709$316
26 years$2,146$1,616$1,200$880$639$273
27 years$2,044$1,521$1,114$806$576$237
28 years$1,950$1,433$1,036$738$520$205
29 years$1,863$1,352$964$677$469$178
30 years$1,781$1,277$898$621$424$154
31 years$1,705$1,207$837$571$383$134
32 years$1,634$1,142$781$524$347$116
33 years$1,567$1,082$729$482$314$101
34 years$1,504$1,025$681$444$284$87
35 years$1,445$972$637$408$257$76
36 years$1,390$923$596$376$233$66
37 years$1,337$877$558$347$211$57
38 years$1,288$833$522$319$192$50
39 years$1,241$792$489$295$174$43
40 years$1,196$754$459$272$158$37
41 years$1,154$717$430$251$143$32
42 years$1,114$683$403$231$130$28
43 years$1,076$651$379$214$118$24
44 years$1,040$620$355$197$107$21
45 years$1,005$592$334$182$97$18
46 years$972$564$313$168$88$16
47 years$941$539$294$155$80$14
48 years$911$514$277$144$73$12
49 years$882$491$260$133$66$11
50 years$854$469$244$123$60$9

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $875,000, adding $2,245 every year, while hoping to spend $40,040 every year in retirement. These numbers increase with inflation.
Reality usually performs much different than the expected returns. This uses historical averages, but anything can happen. In general, riskier investments have greater returns on average, but more volatility in the short term.
Age Total: 100% Stocks Total: 100% Bonds Total: 100% Cash Total: 60/26/14 Blend
39$875,000$875,000$875,000$875,000
40$966,566$920,191$906,628$1,021,064
41$1,022,553$922,678$894,398$1,060,524
42$1,082,909$923,945$880,416$1,098,859
43$1,148,038$923,890$864,582$1,139,725
44$1,218,381$922,404$846,789$1,183,368
45$1,294,427$919,373$826,927$1,230,065
46$1,376,710$914,673$804,881$1,280,119
47$1,465,819$908,177$780,529$1,333,865
48$1,562,401$899,746$753,745$1,391,677
49$1,667,167$889,234$724,396$1,453,966
50$1,780,898$876,488$692,344$1,521,187
51$1,904,457$861,342$657,445$1,593,843
52$2,038,788$843,625$619,546$1,672,491
53$2,184,934$823,152$578,490$1,757,747
54$2,344,040$799,729$534,112$1,850,291
55$2,517,366$773,149$486,238$1,950,876
56$2,706,299$743,196$434,690$2,060,334
57$2,912,367$709,638$379,277$2,179,584
58$3,137,250$672,232$319,804$2,309,642
59$3,382,797$630,719$256,065$2,451,632
60$3,651,045$584,826$187,846$2,606,794
61$3,944,235$534,266$114,922$2,776,501
62$4,264,835$478,733$37,060$2,962,265
63$4,615,562$417,905$0$3,165,762
64$4,999,408$351,441$0$3,395,717
65$5,419,668$278,982$0$3,653,650
66$5,879,969$200,147$0$3,936,313
67$6,384,308$114,536$0$4,246,239
68$6,937,083$21,724$0$4,586,222
69$7,543,141$0$0$4,959,344
70$8,207,819$0$0$5,391,530
71$8,936,995$0$0$5,872,543
72$9,737,144$0$0$6,400,449
73$10,615,399$0$0$6,979,962
74$11,579,615$0$0$7,616,276
75$12,638,448$0$0$8,315,110
76$13,801,428$0$0$9,082,768
77$15,079,060$0$0$9,926,192
78$16,482,911$0$0$10,853,029
79$18,025,727$0$0$11,871,707
80$19,721,550$0$0$12,991,508
81$21,585,849$0$0$14,222,658
82$23,635,665$0$0$15,576,425
83$25,889,778$0$0$17,065,222
84$28,368,872$0$0$18,702,727
85$31,095,742$0$0$20,504,008
86$34,095,500$0$0$22,485,669
87$37,395,815$0$0$24,666,001
88$41,027,174$0$0$27,065,162
89$45,023,166$0$0$29,705,358
90$49,420,802$0$0$32,611,061
91$54,260,863$0$0$35,809,231
92$59,588,284$0$0$39,329,578
93$65,452,575$0$0$43,204,836
94$71,908,292$0$0$47,471,076
95$79,015,548$0$0$52,168,041
96$86,840,581$0$0$57,339,526
97$95,456,380$0$0$63,033,789
98$104,943,368$0$0$69,304,003
99$115,390,168$0$0$76,208,764
100$126,894,433$0$0$83,812,637